Another Day Of Money Flooding Out Of Treasury

http://clusterstock.alleyinsider.com/2009/1/another-day-of-money-flooding-out-of-treasury ^

[Orange1998]

John Carney | Jan 6, 09 10:11 AM Remember back in the days when Hank Paulson and his cronies were saying that calling the TARP a Wall Street bailout was a misnomer because they were bailing out "main street" also because banks would lend out the new cash? That's still not happening.

Yesterday the Treasury forked over another $35 billion to the banks, injecting $15 billion of new capital into seven banks and lending Citigroup another $20 billion. There's no requirement that the money be lent out and these days even that expectation seems to have been dashed. The largest beneficiaries of the government's generosity with taxpayer money are two banks that have recently completed mergers.

[Orange1998]

Monday Citibank gets another 20 Billion making the total 45 Billion. Stunning.

[Opinionated Blowhard]

Same thing happened with Katrina but on a smaller scale. Bush and Congress authorize a huge sum of money and then the administrative minions pass it out without any accountability. Ultimately, way after the fact, we find out it did no good or at least wasn’t used for what we thought it was being used for. And at this point Bush doesn’t even pretend to try to be accountable—as the headline states, money simply pours out of the Treasury with no real oversight.

[Orange1998]

It seems all too apparent Paulson will give as much money available to his friends on Wallstreet before Jan 20. I can only imagine what his position will be after he leaves office.

[FlingWingFlyer]

If you haven’t already got a wheelbarrow, you might want to get one. You’re going to need it to carry your money to the store to buy a loaf of bread. Hyperinflation is on the way.

[mysterio]

I can only imagine what his position will be after he leaves office.

Hopefully in the cell next to Madoff.

[Orange1998]

Writing Checks....He is busier than a one armed wallpaper hanger.

[Orange1998]

Paulson makes Jeff Skilling look like a Saint

[R_Kangel]

This is truly "The Plundering of America."

[mysterio]

Control of the treasury has been given to Goldman Sachs.

[org.whodat]

The largest beneficiaries of the government's generosity with taxpayer money are two banks that have recently completed mergers.

I keep hoping that the democrats will now bring anti trust and bust them all up. To big to fail has to go ASAP!!

[Orange1998]

And when the government needs the money will Goldman Sachs step up.

[Orange1998]

Can we take back the “Freeper of the Year” award from Bush.

[org.whodat]

Can we take back the “Freeper of the Year” award from Bush.

I just wish I could take back my vote.

[Malesherbes]

The annual income of the whole country, the GDP, is about $ 14 trillion. The government is now throwing around trillions with no end in sight. Any ideas where it is coming from?

[Mr_Moonlight]

Citi just cancelled a MasterCard which I never applied for, asked for, or even activated ... they simply sent this thing to me years ago and recently renewed it, but I never even activated the original one! /laughs

Last month I got the renewal card, which I promptly shredded ... and just last week got a letter from Citi that they were "cancelling" this card (which I never activated, used, or even applied for)

Apparently "The Citi Never Sleeps" is a misnomer, they've been sleeping the entire time

[richace]

He’ll be back at Goldman Sachs. Obama advisor Warren Buffet took a major position in Goldman right after Paulson started yelling that the house was on fire.

[woofie]

I do not believe that the US govt is “GIVING” anyone anything.

I would assume these are loans which will need to be paid back, perhaps at cheap intersest rates.

If anyone has information to the contrary (fact not opinion) I would love to see it

[Dawggie]

Ahhh, nothin like the hum of a thousand printing presses gently soothing me to sleep.

Humor is better than leaches to get the blood pressure down.

[Orange1998]

He earned the 2001 award but the remaining should be strip.

[dfwgator]

“...and the money kept rolling out...”

[Glacier Honey]

you got it

[Orange1998]

Yup just like the Social Security Fund in a low risk separate account.

[Orange1998]

Even Houston is starting to feel the pain.

[JasonC]

And into banks, corporations, businesses, households, workers. Horror, everyone knows the whole point of having a government is to take all of everyone's money and lock it away forever in a giant sealed vault.

Clueless populist idiocy. Again.

[JasonC]

On the contrary, it causes stabilized economies and legitimate, popular governments.

[JasonC]

The treasury is buying preferred stock in banks. That pays dividends at a fixed rate, and comes before common shareholders in any liquidation, until repaid in full.

As usual, populist knuckledraggers are trying to get you to hate your country, spreading their class hatred poison and envy, and calling it "fiscal responsibility".

[woofie]

Thanks

now as to whether the Banks are lending or not...I would assume we would prefer that they not lend to dead-beats anymore ...
Im not sure who is seeking loans in this environment but everything for me feels like we have just gone through a major earthquake and people are standing around not sure what to do

[Orange1998]

One thing I do know, its a big enough number one would be foolish to bet against.

[woofie]

That was plan #1 but I think they backed off of that because it was so difficult to figure out which mortgages were “bad”

As I understand it they are putting money out there (loans in essence) and expecting the banks to separate wheat from chaff

[woofie]

Thanks for the link ...it does sound kinda vague but C and D talks about responsibility and protecting the taxpayers...better than nothing

[NOBO2]

Paulsen and Bush proposed the bill. Our Congress hammered out the bill, and finally wrote the bill into law. It was our Congress that put NO oversight into the bill, which has allowed it to become a complete waste of taxpayer money.

[cherry]

if this was happening in Russia, we would all be sitting here smug and wonder why they let it happen, but then again, that's Russia and Russia is run by a bunch of criminals.....

its totally insane what is happening....totally insane....and I don't know anyway to stop it....or to live with it either...

[Jack Black]

The treasury is buying preferred stock in banks. That pays dividends at a fixed rate, and comes before common shareholders in any liquidation, until repaid in full.

Yeah, the problem is the stock we are buying is in companies that are badly upside down and have pathetically low market caps. The FIRST "capital injection" in CITI was $25 Billion. The market cap of Citi at the time was $20 Billion. For less than we 'injected' we could have bought the whole bank.

(and of couse we could have seized it for zero dollars due to its insolvency as the FDIC has done to about 40 banks in the last 12 months. But the chairman of those banks don't play golf with Paulson I guess)

As usual, populist knuckledraggers are trying to get you to hate your country, spreading their class hatred poison and envy, and calling it "fiscal responsibility".

So according to you I have to agree with Socialism-for-the-Rich, Bernacke's sick and twisted growth of the money supply, and propping up horrible monopoly institutions like Goldman and JP Morgan or I'm a "populist knuckledragger" .

Do you always favor ad hominum attacks, or just when discussing banks? Do you work for one of the bailed out entities or something?